Free Louisiana Real Estate Practice Test (2026) — LicenseIQ

Question 1

Under TRID, the borrower must receive the Closing Disclosure at least how long before loan closing?

Accepted Answer

The Loan Estimate is due within 3 business days after application, and the Closing Disclosure at least 3 business days before closing.

Question 2

Federal law requires disclosure of lead-based paint for homes built before:

Accepted Answer

The federal lead-based paint disclosure rule covers housing built before 1978, the year lead paint was banned for residential use.

Question 3

Which loan is insured by the federal government and allows a low down payment?

Accepted Answer

FHA loans are insured by the Federal Housing Administration and permit down payments as low as 3.5%. Conventional loans are not government-backed.

Question 4

How long must a broker keep escrow records and transaction documents?

Accepted Answer

R.S. 37:1449 requires brokers to keep escrow records and transaction documents for five years. Agency forms are also retained five years.

Question 5

A seller spends $40,000 on a pool, but appraisers find it adds only $15,000 in value. This illustrates the principle of:

Accepted Answer

Contribution: an improvement is worth only what it adds to market value, not what it cost.

Question 6

A licensee refuses to testify under oath at an LREC hearing. Under the License Law this

Accepted Answer

R.S. 37:1455 includes refusing to testify under oath at a Commission hearing among the grounds for discipline.

Question 7

What is the maximum the Recovery Fund will pay for all claims arising out of the same transaction?

Accepted Answer

R.S. 37:1463(C) caps aggregate claims from one transaction at $20,000 regardless of the number of claimants. $50,000 is the cap per licensee.

Question 8

Under federal rules, a lender must automatically cancel borrower-paid PMI when the loan balance reaches what percentage of the original value (purchase price)?

Accepted Answer

PMI terminates automatically at 78% LTV based on original value. At 80% LTV the borrower may REQUEST cancellation, which is the tempting distractor.

Question 9

A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

Accepted Answer

In a net listing the broker's fee is the excess over a set net ($40,000 here). It encourages the broker to underprice and is illegal in many states, including NJ.

Question 10

A life estate is measured by:

Accepted Answer

A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).

Question 11

The minimum down payment typically required on an FHA-insured loan is as low as:

Accepted Answer

FHA allows down payments as low as 3.5%. Zero down is associated with VA and USDA loans.

Question 12

To which transaction does the Louisiana buyer-agreement requirement NOT apply?

Accepted Answer

R.S. 37:1448.4 excludes leases of homes and non-home property. Each of the other choices is the purchase of a home.

Question 13

A hidden defect reduces a home's value so that the buyer would still have bought it but at a lower price. The buyer's redhibition remedy is

Accepted Answer

Under art. 2520, a lesser defect that only diminishes usefulness or value gives the buyer the right to a reduction of the price.

Question 14

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 15

A triangular lot has a base of 180 feet and a height of 120 feet. What is its area?

Accepted Answer

Triangle area = (base x height) / 2 = (180 x 120) / 2 = 10,800 sq ft.

Question 16

Which statement about the Louisiana property disclosure document is correct?

Accepted Answer

R.S. 9:3198(D) states the disclosure is not a warranty, is not part of the contract, and cannot substitute for inspections or warranties.

Question 17

A buyer's offer was accepted Wednesday. The seller delivered the disclosure Thursday at 2:00 p.m.; there are no holidays that week or the next. Until when may the buyer terminate under the Act?

Accepted Answer

Count 72 hours excluding weekends: Thursday 2 p.m. to Friday 2 p.m. = 24 hours; skip Saturday and Sunday; Friday 2 p.m. to midnight is 10 more hours (34 total), then the 24 hours of Monday (58 total) and 14 hours of Tuesday reach 72 at Tuesday 2 p.m. Sunday ignores the weekend exclusion.

Question 18

Which Article of the NAR Code of Ethics requires REALTORS not to deny equal professional services or discriminate on protected characteristics?

Accepted Answer

Article 10 addresses equal professional services and fair housing. Article 1 covers duties to clients, Article 3 cooperation and Article 17 arbitration.

Question 19

A listing agent receives an offer she believes is far too low. She must

Accepted Answer

R.S. 9:3893 requires licensees to present all offers to and from the client in a timely manner. The seller, not the agent, decides.

Question 20

The Louisiana property disclosure must address whether the property lies within what distance of a solution-mining injection well?

Accepted Answer

R.S. 9:3198(A)(2)(c) requires disclosure of a known salt-stock cavity beneath the property and whether it is within 2,640 feet (one-half mile) of a solution-mining injection well.

Question 21

A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?

Accepted Answer

Loan = $275,000 x 0.80 = $220,000; points = $220,000 x 0.025 = $5,500. ($6,875 wrongly applies points to the price.)

Question 22

RESPA primarily governs:

Accepted Answer

RESPA requires disclosure of settlement (closing) costs on 1-4 family residential loans and prohibits kickbacks. Rate advertising falls under TILA.

Question 23

Which is a statutory duty a licensee owes to a client?

Accepted Answer

R.S. 9:3893 lists performing the brokerage agreement, promoting the client's interests, presenting offers timely, accounting for funds, and reasonable skill and care.

Question 24

A religious organization operating housing for non-commercial purposes may give preference to members of its own religion, but it may NOT:

Accepted Answer

Religious organizations and private clubs have partial exemptions, but cannot discriminate on other protected classes, and the religion itself cannot restrict membership by race, color or national origin.

Question 25

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Louisiana real estate practice test

1. Under TRID, the borrower must receive the Closing Disclosure at least how long before loan closing?

2. Federal law requires disclosure of lead-based paint for homes built before:

3. Which loan is insured by the federal government and allows a low down payment?

4. How long must a broker keep escrow records and transaction documents?

5. A seller spends $40,000 on a pool, but appraisers find it adds only $15,000 in value. This illustrates the principle of:

6. A licensee refuses to testify under oath at an LREC hearing. Under the License Law this

7. What is the maximum the Recovery Fund will pay for all claims arising out of the same transaction?

8. Under federal rules, a lender must automatically cancel borrower-paid PMI when the loan balance reaches what percentage of the original value (purchase price)?

9. A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

10. A life estate is measured by:

11. The minimum down payment typically required on an FHA-insured loan is as low as:

12. To which transaction does the Louisiana buyer-agreement requirement NOT apply?

13. A hidden defect reduces a home's value so that the buyer would still have bought it but at a lower price. The buyer's redhibition remedy is

14. Which action may a life tenant take WITHOUT the remainderman's consent?

15. A triangular lot has a base of 180 feet and a height of 120 feet. What is its area?

16. Which statement about the Louisiana property disclosure document is correct?

17. A buyer's offer was accepted Wednesday. The seller delivered the disclosure Thursday at 2:00 p.m.; there are no holidays that week or the next. Until when may the buyer terminate under the Act?

18. Which Article of the NAR Code of Ethics requires REALTORS not to deny equal professional services or discriminate on protected characteristics?

19. A listing agent receives an offer she believes is far too low. She must

20. The Louisiana property disclosure must address whether the property lies within what distance of a solution-mining injection well?

21. A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?

22. RESPA primarily governs:

23. Which is a statutory duty a licensee owes to a client?

24. A religious organization operating housing for non-commercial purposes may give preference to members of its own religion, but it may NOT:

25. The best way to create an agency relationship is a(n):

Sources